Options on a new account
Here’s a summary of the main problem and solutions discussed in the conversation:
- Main Problem: The user’s friend is experiencing difficulties in obtaining Level 1 options approval despite having a sufficient cash balance and margin enabled; they are being asked for additional documentation.
- Solution Offered: The user was advised that options approval decisions consider trading experience, financial situation, and investment objectives, and to check with customer service for specific documentation requirements.
- Further Assistance: The user was encouraged to contact Fidelity’s Customer Service for clarification on the application status and to ensure all necessary account details are properly checked for Level 1 options.
These steps can help address the issues faced during the options approval process.
Here’s the full thread
Are there any account level requirements for level 1 options on a brokerage account?
The new account has 5k cash
Has margin enabled
But every time my friend applies for level 1 options it asks for documentation. We uploaded a statement from E*trade of equities but that’s all he has. He is new to options. I have level 1 on two different accounts. I’ve never run into this.
Hey there, @kennyisnotdead. Thank you for reaching out regarding the options application process.
Options approval decisions are based on trading experience (including experience trading stocks/ETFs, mutual funds, bonds, etc.), financial situation, and investment objective. When an application is reviewed, clients will typically receive a notification indicating what level they have been approved for.
That said, if additional documentation is required, your friend may contact our Customer Service team to status their application and confirm the required documentation. Associates are available 24/7 and can be reached via the link below.
Fidelity Contact Information: https://www.fidelity.com/customer-service/contact-us
If additional questions come up, feel free to reach out.
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read the Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
He was able to get margin enabled without any documentation. The level 1 options seems strange as that should be simple. Are there any account level details we can double check to make sure all the basic checkboxes are checked for level 1 options?
Hi, @kennyisnotdead. Thanks for following up.
As @FidelityHeather mentioned, options approval decisions are based on trading experience (including experience trading stocks/ETFs, mutual funds, bonds, etc.), financial situation, and investment objective.
Let us know if you or your friend have additional questions. 🟢